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[USER=3610]@Sean K[/USER], living off dividends is a potential strategy for me at least. I've been considering an investment strategy living off dividends, particularly after reading [USER=86149]@divs4ever[/USER]'s insights over the last year. The basic idea is to generate sufficient dividend income to sustain my retirement without depleting my capital. With high dividend yields and the benefit of franking credits, this approach can be effective, especially during the pension phase of superannuation when dividend income is tax-free.

While dividend yields can fluctuate, large companies tend to maintain their payout levels as a priority. Although dividends may be reduced or increased, the variations are usually minor compared to the overall dividend income.

To make this strategy work, it's important to do the sums and ensure that your dividend income will cover your expenses and well exceed your annual withdrawal limits, meaning your funds will continually grow. This may require some calculations and planning, but it's a straightforward process. With proper planning and diversification, this approach can provide a sustainable source of income in retirement without lifting a finger.

Hint: Reading [USER=71583]@Belli[/USER] posts will keep you updated with all things super.

Skate.